Financial services firm Morgan Stanley on Wednesday launched a new crypto-trading pilot through its E*Trade platform, taking another leap towards digital asset dominance.
The latest developments come amid a growing trend of conventional finance venturing into the digital asset space that was earlier controlled by crypto-centric firms alone.
According to reports from Bloomberg, the financial institution is quoting 50 basis points per transaction, equal to 0.5 percent of the transaction value from its retail clients. This rate is marginally higher than the charges quoted by industry giants such as Coinbase, Robinhood, and Charles Schwab.
However, more active or advanced traders can still find lower rates on platforms like Kraken Pro, Binance U.S., and certain Coinbase Advanced tiers.
The service is being tested in a limited pilot phase for now before being accessible to the wider audience, per media reports. A wider rollout is expected later this year, when access is gradually extended to E*Trade’s roughly 8.6 million users.
Morgan Stanley tests retail crypto trading
The pilot reflects a broader shift across Wall Street and comes as large financial institutions are no longer just watching the crypto market from the sidelines. Instead, banks and institutions are actively building products to capture a share of the trading activity that has largely taken place on dedicated crypto platforms.
Through the inclusion of crypto trading capabilities into the conventional world of brokerage, Morgan Stanley is enabling its current customers to transition into cryptocurrencies without changing platforms.
The latest move follows closely on the heels of the bank’s launch of a spot Bitcoin exchange-traded fund, the MSBT, which brought in $30.6 million in inflows on its first day of trading on NYSE Arca.
The developments point to a broader strategy of building out a more complete crypto offering, spanning both investment products and direct trading access.
Morgan Stanley’s actions in tandem with market trend
In addition to Morgan Stanley, other significant players in the finance industry have followed suit by joining the rush of banks towards cryptocurrencies trading. For instance, Charles Schwab has incorporated crypto transactions by introducing spot trading of Bitcoin and Ethereum tokens for its retail customers. The new service has been rolled out at a transaction cost of 75 basis points.
On the other hand, Goldman Sachs has chosen a somewhat unique path, announcing its plans to offer an SEC-approved income fund with exposure to Bitcoin. Instead of holding actual Bitcoin tokens, the income product would earn money by issuing call options on Bitcoin exchange-traded products.
Previously, the Wall Street had shown its interest in establishing crypto infrastructure. Notably, BNY Mellon introduced its digital asset custody service in the U.S. last year, making it possible for select clients to hold and transact Bitcoin and Ethereum under regulatory control.
The latest stage stands out because of the involvement of average investors who could easily incorporate crypto assets into their investment portfolio through traditional brokerage accounts.